KR Choksey's research report on ICICI Bank
Net interest income (NII) increased by 23% YoY to INR 1,22,360 Mn in Q3FY22 from INR 99,125 Mn in Q3FY21. The net interest margin was 3.98% in Q3FY22 vs 3.67% in Q3FY21. Core operating profit (profit before provisions and tax, excluding treasury income) grew by 25% YoY in Q3FY22. Non-interest income, excluding treasury income, grew by 25% YoY. Fee income grew by 19% YoY to INR 42,910 Mn in Q3FY22. Provisions (excluding provision for tax) declined by 27% YoY to INR 20,073 Mn in Q3FY22. The profit after tax grew by 25.4% YoY to INR 61,938 Mn in Q3FY22 compared to INR 49,396 Mn in Q3FY21. Total deposits increased by 16% YoY and 4% sequentially to INR 1,01,74,667 Mn while advances grew 16.4% YoY at INR 81,39,916 Mn as on 31st December 2021. Net NPA ratio declined from 0.99% as on Sept 30, 2021, to 0.85% as of December 2021. The capital adequacy ratio was 19.79%.
Since our last update, the shares of ICICI Bank have appreciated by ~8%. We have applied a P/ABV multiple of 2.5x to the FY24E ABV of INR 316 per share, implying a SOTP valuation of INR 955 per share (unchanged). It has a potential upside of 19.6% at the CMP of INR 798 per share. As a result, we maintain our “BUY" rating on ICICI Bank's shares.
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At 17:30 ICICI Bank was quoting at Rs 794.00, down Rs 7.55, or 0.94 percent.
It has touched an intraday high of Rs 801.40 and an intraday low of Rs 781.30.
It was trading with volumes of 490,178 shares, compared to its thirty day average of 502,164 shares, a decrease of -2.39 percent.
In the previous trading session, the share closed up 0.42 percent or Rs 3.35 at Rs 801.55.
The share touched its 52-week high Rs 859.70 and 52-week low Rs 512.10 on 25 October, 2021 and 28 January, 2021, respectively.
Currently, it is trading 7.64 percent below its 52-week high and 55.05 percent above its 52-week low.Market capitalisation stands at Rs 551,364.44 crore.
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